The Marion Finance Committee met on February 20 to go over a draft of the Fiscal Year 2026 budget. Chairman Shay Assad began the meeting by welcoming Town Administrator Geoff Gorman and Finance Director Heather O’Brien. Following the approval of the previous meeting’s minutes, discussions were underway on next year’s budget.
Gorman presented the budget draft via PowerPoint, with all members having a physical copy that had been sent to them electronically approximately three weeks prior. In order to formulate the draft and a plan going forward, Gorman explained each city department had received a request for a “level service budget.” This shows the department’s current ability to support services. Any additional requests that would inflate a department’s budget are saved until after the budget is balanced.
For his executive summary, Gorman also explained for FY25 that three new employee contracts have been completed, the Harbormaster Department reorganization has been implemented following the opening of the new Maritime Center, and providing retention support to various areas.
Increases in non-discretionary expenses are driving an increase to the budget. Inflation has played a significant role, with wages as well as the “general cost of doing business.” General Insurance is up 5% to 8% with increases in flood insurance cited. Health insurance is up significantly, with estimates of 8% to 20% rises depending on area. Schools have also requested more, outside of revenue growth, Sippican Elementary School (8%), Old Rochester Regional (7%), and Upper Cape Tech (11%).
Revenue growth is currently estimated at $698,976, which is 10% lower than FY25. This is not to say revenue isn’t growing, but at a slower rate than previously observed. Free cash currently sits around $3,000,000 with Town House renovations, Route 6’s watermain, and other local infrastructure projects contributing to the largest unknown that will affect said free cash.
After questioning, Gorman stated that the Massachusetts’ Department of Revenue wants towns and cities “to have free cash as part of fiscal responsibility. They arrange between 5% and 7% [on average]. We are above that 7%.” He also added the town wants to find a way to lower the amount under 7%, though too much cannot be used to offset actual budget, as in used for one-time purchases. For grants, funds exceed $5,000,000.
For increases in expenses, police reform was stated first with increases in responsibilities and benefits, the aforementioned Harbormaster reorganization, and the success of recruitment, retention, and promotion. Education currently takes up 46% of the budget. Curbside garbage collection was brought up, with the SEMASS and Curbside collection contracts coming up for bid next year. There has been an estimated 5% increase for contract renewal.
For budget growth, overall, there was a $1,668,446 (5.8%) increase, with 3.6% growth on average over the last five years.
Following the Town Administrator’s Executive Summary, Finance Director Heather O’Brien began her discussion on projected revenue. O’Brien told the committee that 79% of the town’s budget comes from property taxes, while local receipts (vehicle, license, and permits) account for 7%; 5% comes from state aid and other transfers, and approximately 4% in free cash.
It was discussed and argued by committee members that the current tax rate determined by the Select Board is too high, given the town’s 11% to 15% free cash. That or capital expenses are being underbudgeted, they argued. While the town is using this excess capital for popular capital expenditures, Assad suggested it may be prudent to reexamine the revenue streams. He also said the cushion of the funds protects against natural disasters or unforeseen alterations to the budget. A lengthy discussion on this followed, with disagreements on how much free cash would be needed to ward off budget concerns should another “snowmageddon” occur.
O’Brien continued with a breakdown on the FY26 preliminary budget summary. The total town budget is $30,506,157. Below is the breakdown.
Schools/Education – $14,345,553 (47.03%)
Public Safety – $4,738,802 (15.53%)
Pension & Insurance – $4,591,917 (15.05%)
General Government – $2,761,040 (9.05%)
Public Works – $2,493,943 (8.18%)
General Fund Debt Service – $695,665 (2.28%)
Human Services – $479,798 (1.57%)
Culture & Recreation – $399,433 (1.31%)
Current variance between revenue and expenses sits at around $757,000, though the Finance director again stated they are looking for ways to close the gap.
The Finance director, town administrator and Finance Committee all agreed there is much work and discussion left to be done.
The next meeting of the Marion Finance Committee was scheduled for Wednesday, February 26, at 7:00 pm in the Marion Town House’s conference room.
Marion Finance Committee
By Sam Bishop